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The debate was over the unsafe conditions Nike was providing its factory workers while it experienced continual increase in profits. Nike was also criticized for failure to follow child labor laws by hiring children who were not allowed to work and forcing them to work overtime for below minimal pay. Nike is a widely recognized brand, which is the reason several other host governments became involved in the sweatshop case.

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The shift from wholesale to retail helped boost the German firm’s gross margin by 1.5 percentage points to 49.3 percent in 2013 compared with 43.6 percent for Nike, which makes less than a fifth of sales from its own stores and online.

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